Tesla ask shareholders to approve $56bn pay deal for Elon Musk rejected by judge

Core Viewpoint - Tesla is seeking shareholder approval for CEO Elon Musk's $56 billion pay package, which was previously rejected by a Delaware judge as unfair to shareholders [1][2] Group 1: Compensation Details - The compensation package includes no salary or cash bonus, but is tied to Tesla's market value reaching up to $650 billion over the next 10 years [1] - Tesla's current market valuation is over $500 billion according to LSEG data [1] - Musk's compensation for 2023 was reported as $0, as he does not take a salary and is compensated through stock options [2] Group 2: Legal Context - The Delaware court ruling, which nullified the pay package, was described by the judge as "an unfathomable sum" [1] - The ruling can be appealed, and Tesla's board disagrees with the court's interpretation of corporate law [1] Group 3: Corporate Actions - Tesla suggested subjecting the original 2018 pay package to a new shareholder vote if legally advisable [2] - The company is also urging investors to approve its decision to move its state of incorporation from Delaware to Texas [2] - Shares of Tesla were up 1% before the market opened [2]